Middle Coast Investing, an investment advisor firm, released its third-quarter investor letter. A copy of the letter can be downloaded here. It was a frustrating quarter for the firm. The portfolio appreciated in the quarter but lagged the main indices and closer benchmarks. The portfolio’s price to earnings for the trailing 12 months (TTM) was 19.7. Cash and equivalents accounted for 17.1% of the portfolio at the end of the quarter, with an estimated average yield of 3%. This compares to 13.4% of the portfolio and a 3.9% yield at the end of Q2. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Middle Coast Investing highlighted stocks like Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) in the third quarter 2024 investor letter. Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) holds concessions to develop, operate, and maintain airports in Mexico. The one-month return of Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) was 1.14%, and its shares lost 2.09% of their value over the last 52 weeks. On October 8, 2024, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) stock closed at $67.51 per share with a market capitalization of $3.317 billion.
Middle Coast Investing stated the following regarding Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) in its Q3 2024 investor letter:
“We added meaningfully to our Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) (Central North Airport Group in Mexico) position. A year ago, shares of this and PAC (Pacific Airport Group) plunged on government regulation concerns, but also a hurricane hitting Acapulco (OMAB runs the airport) and plane engine issues for the major Mexican airline, Volaris.
We start to lap those issues in October and November, meaning comparisons get easier for the business. Mexico also has a new president, Claudia Sheinbaum. She is from the same political party, and that party has a supermajority and is ramming through a controversial judicial reform. But I expect her to be less contentious and more technocratic than her predecessor, Andreas Manuel Lopez Obrador (AMLO) [3]. And PAC recently announced (PDF) its new Master Development Plan approved by the government, and while it calls for a lot of investment, it also has healthy tariff increases built in. I don’t think the government is “coming” for the airport businesses, and the share prices are more than reasonable.”
A daytime aerial view of an airport bustling with planes and staff.
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is not on out list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) at the end of the second quarter which was 5 in the previous quarter. While we acknowledge the potential of Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) and shared the list of worst airport stocks to buy along with the latest developments in the air travel industry. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.